Yesterday’s signals were not triggered as there was no bearish price action at 1.3366.
Today’s USD/CAD Signals
Risk 0.75% per trade.
Trades may only be taken before 5pm New York time today.
Long Trade 1
* Long entry after the next bullish price action rejection following a first touch of 1.3359.
* Put the stop loss 1 pip below the local swing low.
* Adjust the stop loss to break even once the trade is 20 pips in profit.
* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
Short Trade 1
* Short entry after the next bearish price action rejection following a first touch of 1.3423.
* Put the stop loss 1 pip above the local swing high.
* Adjust the stop loss to break even once the trade is 20 pips in profit.
* Remove 50% of the position as profit when the trade is 20 pips in profit and leave the remainder of the position to ride.
The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.
USD/CAD Analysis
This pair has finally come to life, and has been the outstanding performer since the week opened. There is real momentum in this bullish move which is easily breaking resistance levels. Moves such as this, which come after prolonged periods of low volatility, tend to trigger more volatility, meaning either a continued strong upwards movement or a sharp fall back. The next challenge for bulls is the former upper band of a resistant area (which now stands alone as a level) at 1.3423. I’d like to see the movement slow down considerably before feeling happy about a short trade there under these conditions.
Regarding the CAD, there will be a release of Trade Balance data at 1:30pm London time. There is nothing due concerning the USD.